Pantera Capital’s Q1 2026 State of Tokenization report reveals that the tokenized asset market has swollen to $321 billion yet remains structurally immature, with the vast majority of products functioning merely as digital wrappers around traditional financial instruments. Using its proprietary Tokenization Progress Index (TPI)—a framework scoring issuance, transferability, and composability on a scale from 1 to 5—Pantera analyzed 542 live assets across 11 asset classes. The average composite score was just 2.04.
According to the report, 77.6% of tracked assets fall into the “Wrapper” tier, meaning they replicate off-chain products like Treasurys, funds, and credit vehicles without fundamentally redesigning them for blockchain-native functionality. Another 11.1% are considered Hybrid, while only 2.7% achieve Native status. Pantera describes the current state as analogous to “putting a newspaper on a website”—digital delivery without a format change.
Issuance and redemption channels remain the sharpest bottleneck, averaging a TPI of 1.82. A striking 91.1% of assets (494 out of 542) still rely on gated minting and intermediary-controlled exits. Only 13 assets scored 4 or 5 on this dimension. The regulatory landscape heavily shapes this dynamic; US-domiciled assets average a 2.0 TPI, with SEC-regulated products clustering toward wrapper patterns. The permissioned Canton Network, backed by Goldman Sachs and BNY Mellon, averages approximately 1.75, below the market mean, due to its compliance-first design.
Stablecoins remain the exception. They account for roughly $293 billion (~92%) of total tracked value and hold the highest composite TPI of 2.67, demonstrating meaningful on-chain utility at scale. US Treasury products follow at about $12 billion but largely carry Tier‑1 wrapper architectures despite institutional support from BlackRock, Franklin Templeton, and others. Private credit has emerged as the most DeFi-integrated non-stablecoin category, with 64.3% of its market value active in DeFi, primarily through Maple’s syrupUSDT and syrupUSDC pools. Conversely, real estate and corporate bonds show virtually zero DeFi utilization.
Since 2024, the market added roughly $120.5 billion and saw 168 new tokenized launches in 2025—more than double the 78 recorded the prior year—yet most new entrants replicate low-maturity wrapper structures rather than building deeper on-chain composability. Pantera warns that 88% of assessed assets remain stuck in Phase 1 of the tokenization lifecycle, a phase the firm cautions could become a permanent ceiling if issuers do not move beyond copying legacy frameworks.
